Philippines expands AI use despite inflation, talent shortfall
The ASEAN+3 Macroeconomic Research Office (AMRO) warns that the Philippine economy faces rising inflation, with headline rates projected to average 6.0% in 2026 and GDP growth slipping to 2.8% in the first quarter. Despite these headwinds, AI adoption is accelerating. A survey commissioned by Alibaba Cloud found that 91% of Philippine respondents view AI positively, 57% are actively implementing it, and 74% have migrated most IT infrastructure to the cloud.
Fortinet’s 2026 Global Cybersecurity Skills Gap Report shows that 94% of Philippine IT and security leaders are using or piloting AI‑driven security tools, yet 73% cite a shortage of AI‑skilled cybersecurity talent as a major recruitment obstacle. Moreover, 93% of organizations reported at least one breach in the past year, with many incidents costing over US$1 million.
Local governments are also embracing AI. PLDT and Smart have rolled out an “AI‑in‑a‑Box” programme to municipal offices in Cebu, providing laptops, smartphones and AI tools such as ChatGPT to speed public services. Data privacy and security remain the top concerns for firms, with 51% flagging them as barriers to broader AI adoption.
Entities: ASEAN+3 Macroeconomic Research Office · Alibaba Cloud · Alibaba Cloud Philippines · Bangko Sentral ng Pilipinas · Fortinet · Grant Gong · PLDT‑Smart · Philippines
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] 94% of IT and security decision‑makers in the Philippines are using or piloting AI‑driven security solutions. (Fortinet Global Cybersecurity Skills Gap Report)
- [○ 1 SOURCE] Philippine GDP growth slowed to 2.8% in the first quarter of 2026. (AMRO)
- [○ 1 SOURCE] 91% of Philippine respondents have a positive attitude toward AI adoption. (Alibaba Cloud survey)
- [○ 1 SOURCE] 93% of Philippine organizations experienced at least one security breach in the past 12 months. (Fortinet report)
- [○ 1 SOURCE] 57% of Philippine firms are actively exploring or implementing AI. (Alibaba Cloud survey)
- [○ 1 SOURCE] 74% of Philippine organizations have migrated most IT infrastructure to the cloud. (Alibaba Cloud survey)
- [○ 1 SOURCE] AMRO projects headline inflation to average 6.0% in the Philippines in 2026. (AMRO)
- [○ 1 SOURCE] 73% of Philippine security leaders cite a shortage of AI‑skilled talent as their top recruitment challenge. (Fortinet report)